Stocks jumped higher Friday as Intel and Tesla were early risers. Trade Desk scored a breakaway gap breakout. President Donald Trump was scheduled to join the China trade talks underway in Washington, stirring investor optimism and oil prices.
The Dow Jones industrials popped 0.5%, enough to turn the index positive for the week and aim toward its longest weekly rally in 24 years. The Nasdaq Composite also climbed 0.5%, while the S&P 500 pushed to a 0.4% gain. The Nasdaq is tracking toward its longest string of weekly advances since 2009.
Intel led the Dow and the Nasdaq 100, with more than two-thirds of the 30 Dow listings advancing in premarket trade. Intuit topped the S&P 500, following a late-Thursday earnings reports and an analyst price target hike Friday morning.
Stocks set to break out on earnings news included Trade Desk and Acacia Communications. Zillow, Roku and Universal Display also soared on earnings. Dow Jones stock Intel jumped on an analyst upgrade. Tesla shares perked higher on the company's first Model 3 deliveries in China.
Mining issues were in motion. Newmont Mining jumped, on earnings, and after reports said Barrick Gold was considering a takeover. Kirkland Lakes reversed into early losses after reporting quarterly results late Thursday.
Kraft Heinz dropped to the bottom of the S&P 500 and the Nasdaq 100, collapsing as analysts downgraded the stock after a weak quarterly report, and news that it faced an accounting investigation. Also on Friday's injured list: Stamps.com dived 56% after the company ended its partnership with its top customer, the U.S. Postal Service.
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President Donald Trump reportedly plans to meet with Chinese Vice Premier Liu He in Washington on Friday afternoon. The two aim to finalize some sort of preliminary trade deal, according to Bloomberg.
Reports Thursday said negotiators were working on memorandums of understanding covering non-tariff barriers, services, technology transfer and intellectual property, and which would provide the underpinnings for a preliminary agreement. Trade tariffs on China-made imports valued at $200 billion per year are set to increase from 10% to 25% beginning March 2.
President Trump and Vice Premier Liu were scheduled to meet at 2:30 p.m. ET.
Intel thrashed out an early lead on the Dow, up 3% after Morgan Stanley boosted its rating on the stock to overweight, from equal weight. The note also boosted the chipmaker's price target to 64, from 55. The target was 24% above Thursday's closing price.
Intel shares finished Thursday up 21% from a late-October low, back above key technical support and above the mid-point of the left side of the stock's eight-month long base pattern. The stock was 12% below the base's potential buy point at 57.70.
buy point at 57.70.
Growth stocks were in fine form early Friday, with IBD Sector Leader and IBD 50 stock Trade Desk spiking 24% at the open, while Acacia spiked 8%. Intuit sparked 5% higher, exiting a buy range above a 231.94 buy point.
It's been a volatile week for Trade Desk, which broke out past a 157.60 handle buy point on Tuesday. The stock fell back below that entry on Wednesday, falling 7.6% below the threshold — that left some wiggle room for investors holding out for an 8% limit on the automatic sell rule.
Shares retook the buy point emphatically at Friday's open, following a strong fourth-quarter report late Thursday. The move set up a breakaway gap buying range, beginning at the stock's 175.75 opening price and running through 184.53.
Kirkland Lakes, also an IBD 50 stock, ended Thursday with a 7.8% gain, after increasing its three-year gold production outlook. Shares fell 3% at Friday's open, despite the miner announcing a 68% earnings gain and a 32% rise in revenue for its fourth quarter. Both numbers topped expectations.
The stock ended Thursday up 38% since the start of the year, and extended after a breakout from a cup base in December.
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The Nasdaq composite and the Russell 2000 each ended eight-day rallies on Thursday. The question now: will the Dow Jones industrials and the Nasdaq recover enough ground to continue their weekly winning streaks?
The Dow Jones industrials was down 0.1% for the week through Wednesday. The benchmark is sitting atop an eight-week advance, its longest consecutive run up since 2013. If it can push that to nine, it would mark the index's longest string of weekly advances since a 10-week rally in March-May 1995.
The Nasdaq composite ended Thursday down 0.2% for the week. If it can turn that around and log a ninth-straight weekly advance, it would mark its longest string of weekly gains since its rebound from a market-crash low in March-May 2009.
The Russell 2000 small-cap gauge showed a 0.4% gain for the week through Thursday. It also is tracking toward its ninth weekly gain. Both the Nasdaq and the Russell 2000 are struggling against resistance at their 200-day moving averages. Neither index has logged a weekly close above that technical barrier since October.
For more detailed analysis of the stock market and its current uptrend, study IBD's Big Picture.
Tesla swung ahead 1.7%. The company said it had begun to deliver its Model 3 sedans in China, ahead of potential tariff increases at the beginning of March. Owners took possession of the first Model 3 imports at a ceremony in Beijing on Friday. Tesla is building a factory in China, expected to begin limited production by the end of this year.
Tesla shares have been in a weakening trend since early December. The stock has broken down below its converged 10- and 40-week moving averages, ending Thursday 23% below its December high.
Oil prices ticked toward a second-straight weekly advance, helped by optimism toward progress in U.S.-China trade talks. West Texas Intermediate swung 0.9% higher Friday, aiming to end the week above $57 a barrel for the first time since November. Europe's Brent crude benchmark added 0.5% to trade above $67. WTI prices could see some impact from Baker Hughes weekly rig count report, due out at 1 p.m. ET.
Copper surged 1.3%, to near $2.94 per pound, trading up 11% from a Jan. 4 low and at its highest level since June. Gold gained 0.3%, trading around $1,332 an ounce, after falling nearly 2% on Thursday.
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